Share

South Africa's inflation expectations 'encouraging', SARB says

Inflation expectations are showing an "encouraging" decline toward the midpoint of the central bank’s target range while the country’s financial system remains stable, according to South African Reserve Bank Deputy Governor Daniel Mminele.

"In contrast to many other emerging markets, inflows of nonresident capital, be they portfolio flows or bank loans, have not spilled over into excessive domestic credit growth," Mminele said in a speech late on Tuesday.

"Nevertheless, because of the nature of South Africa's economy -- which is a relatively small and open one, vulnerable to external shocks, yet one where the domestic price and wage formation process is fairly rigid -- the fight to stabilize inflation is far from over."

Economic activity has disappointed over the past year, Mminele said, adding that growth projections for 2020 and 2021 only show, at best, a sluggish recovery.

Instead of changing the central bank’s mandate "it appears to us that a strategy of limiting inflation volatility and hence the risk premium embedded in the cost of capital in South Africa is the best approach to support medium-term economic growth," he said. 

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.2%
Rand - Pound
23.91
-0.1%
Rand - Euro
20.43
+0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.2%
Platinum
910.50
+1.5%
Palladium
1,011.50
+1.0%
Gold
2,221.35
+1.2%
Silver
24.87
+0.9%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders